India says Petrochina, other global oil companies keen to build SPRs

Oil prices fall as China woes offset boost from high US fuel demand

Chinese oil major Petrochina is among global companies that have shown interest in building new strategic petroleum reserves (SPRs) in India, the country's junior oil minister said on Thursday.

During two roadshows held to seek private investment for building the SPRs, global companies, including BP, Shell and traders Trafigura, Vitol, Glencore, Vopak and KNOC showed interest, Rameswar Teli said.

India, the world's third-biggest oil importer and consumer, has 5.55 million tonnes of crude reserves at three locations in southern India.

In 2021, the Indian cabinet approved building two more SPRs with the help of private companies - a 6.5 million-tonne facility at Chandikhol in easter Odisha state and a 2.5 million-tonne cavern at Padure in southern Karnataka state.

The SPRs would be owned by the federal government. The government would hold the first right over the crude oil, in case of any shortages, Teli said in a written reply to a query from lawmakers.

"The concessionaire shall transfer the SPR along with single mooring point, onshore and offshore pipeline to the government at the end of the 60 years of concession period," Teli said.